PERTH (miningweekly.com) – Phosphate producer Avenira is hoping to raise A$2.5-million through a share purchase plan to strengthen its balance sheet as it continues the ramp-up of its Baobab project, in Senegal.
The company will offer shareholders the opportunity to buy up to A$15 000 worth of new shares, at a price of 8.4c a share.
The offer price represents a 10.6% discount to the 14-day volume weighted average price of Avenira shares.
Chairperson Chris Pointon on Wednesday said the company continued to make good progress with its Baobab project, with a maiden shipment completed in March. Avenira was also expecting to shortly agree to the terms of a follow-up shipment.
“Shareholders will be aware, however, that these initial shipments have come later than anticipated and this share purchase plan will provide a welcome working capital buffer as we continue to manage the ramp-up,” Pointon said.
The Baobab project is set to produce 500 000 t/y of phosphate concentrate. Under close geological supervision, phosphate mineralisation has already been uncovered on the western side of the Stage 1 openpit.